Table 4: System of simultaneous equations estimates: baseline model.

CivilCommonCivilCommonCivilCommon
( 1 ) MBE ( 2 ) HERF ( 3 ) LEV

LEV1.707***1.302***0.215***0970***
(0.333)(0.332)(0.043)(0.035)
MBE0.118***−0.744***−0.549**0.766***
(0.044)(0.168)(0.284)(0.173)
HERF4.091***1.030***
(0.213)(0.048)
SIZE−1.151***−0,384**−0.170***−0.284***0.756***0.292***
(0.217)(0.163)(0.032)(0.105)(0.092)(0.108)
OPORT−0.013−0.007−0.004***−0.005−0.019**−0.005
(0.009)(0.004)(0.001)(0.004)(0.008)(0.004)
RISK31.893***0.013**−3.874**0.010**16.656*0.010**
(5.231)(0.006)(1.647)(0.005)(8.262)(0.005)
ROA26.884***24.371***0.849***18.134***−3.790***−18.689***
(3.295)(1.530)(0.786)(3.424)(3.315)(3.517)
C1−0.034***−0.008*
(0.011)(0.004)
C120.000**0.000
(0.000)(0.000)
INS−0.047***−0.000
(0.011)(0.001)
INS20.000***−0.000
(0.000)(0.000)
Country effectYesYesYesYesYesYes
Industry effectYesYesYesYesYesYes
Year effectYesYesYesYesYesYes
Observations117616081176160811761608
Average treatment effect−0.1504***
(0.0062)
1.2545***
(0.2082)
−1.4443**
(0.7152)
Hausman-Wu test82.41***66.35***11.36***12.73***27.84***65.97***
𝑅 2 0.47040.34100.19880.37560.29640.2760

Estimated coefficients and (standard deviation) of the systems of simultaneous equations. The endogeneous variables are financial leverage (LEV), MBE (ratio of equity market to book value), and HERF (Herfindahl index of ownership concentration). The exogeneous variables are return on assets (ROA), the size of the firm (SIZE), the growth opportunities (OPORT), the risk of the assets (RISK), the percentage of shares held by the largest shareholder (C1) and the percentage of shares held by the managers (INS). ***, **, * stand for significant at 99%, 95%, and 90% confidence levels. The Chow test allow testing the null hypothesis that both estimations are from the same sample. All the estimations include time-dummy variables.